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wholesaling with no money down
How can i start wholesaling properties with no or little money
That is a pretty broad question. There are several amazing whole sellers on here. I would suggest looking for a wholesale mentor. Maybe find a local whole seller whom you can be a "bird dog" for. Putting in the time to learn will give you the experience and knowledge to learn the in's and outs of whole selling.
Originally posted by Damion Hopkinson:It takes the skill, the relationships, and the knowledge to become a wholesaler, money or no money.
How can i start wholesaling properties with no or little money
The simple answer to your broad question is that it does take money to become a true wholesaler, but it does not take the full acquisition prices and it does not necessarily have to be YOUR money. (OPM)
Depending on the stratgey you use to acquire properties will determine what you need to do. For instance, choosing the REO market to wholesale will require a different stratgey and team then going after motivated home sellers and such.
I also see this is your first post. My best advice to you is to stay active here on BP and read and interact with the membership. This will be your best resource for your education.
Get educated first, then go out and make some money.
im studying so hard right now reading books, surfing the web and talking to alot of people, just trying to educate myself. im so serious and motivated right now.
Originally posted by Damion Hopkinson:I don't think you can find a better resource than BP Nation for your education. Stick around, fill in your profile and join in the conversations.
im studying so hard right now reading books, surfing the web and talking to alot of people, just trying to educate myself. im so serious and motivated right now.
Search for "Whoelsaling" here --there is also a Group and Forum for " Whoelsaling " --
This question has been asked before by others --check all those --
Build a Buyer's List and then start looking at properties- need to learn about contracts , rehab costs, other costs and pricing wholesale
property--read Justin's blog and my comments --about costing
I agree, build a buyer's list first - then you will know what the buyers want (area and price) and then you can look for properties. I call it the Reverse Approach. Also you want these buyers to be cash buyers, so you can flip the properties to them with no money from you (you will use a Transactional Funding lender.) Good luck!
The biggest misconception in realesate out there is that you need alot of money to get started.Well im here to tell you that you dont but only if you know what your doing. I have wholesaled house's with just $1 and make several thousands dollars at closing. So im here to tell you its possible just have to get the proper knowledge but that would be useless if you dont TAKE ACTION! Good luck
I would like to know how you wholesale with just one dollar , could you please send me some information on that or if you know of anywhere to find that information . Thank you
Damion,
That is the only way to wholesale. No money, No credit, No BS! You want to create good contracts on properties that would be desirable to others and sell them your interest in the contract. I would say out of everyone I mentor, this is the most popular request from people.
I did simplify it quite a bit, but it is really not much more complicated than I am explaining.
Now go get crackin on makin some offers to sell!!! :mrgreen:
I was told that I have to have an approval letter from the bank is there a way you can get around that rule ? what kind of contract do you put it under to where you can turn around and flip it and is it a good season to do that in Florida , SW florida to be exact?
You are probably talking about a "proof of funds" letter. This will be required buy realtors, banks and educated sellers. You can find them or buy them. Also, you can use a private lender who lets you use a bank statement. Also, a lot of banks may not let you use the BS anymore.
You would be wise to join a local REI Club and find a mentor to help with this.
You have not stated what type deals you plan on working. Where do you plan on finding your wholesale deals?
You will need a plan and some marketing dollars. Without that you will have a hard time even finding a deal.
As far as the contract, you can use any however, it would be best to know what others are using. Once the contract is assignable, you will need an assignment to make an assignment fee when you assign your interest in the contract.
Originally posted by Bridgette Poppell:
I was told that I have to have an approval letter from the bank is there a way you can get around that rule ? what kind of contract do you put it under to where you can turn around and flip it and is it a good season to do that in Florida , SW florida to be exact?
That's only if you are dealing with REO's which is a whole other kind of strategy.
Basic Wholesaling deals with FSBO's.
Well first I want to know, are you wanting to but the properties to keep for yourself or to flip zero down? it is easier to do no money down if you plan to flip but buy and hold is a bit more tricky.
I have done both buy and hold and flip no money down many times. It is the only way I buy my own properties to keep. Good luck, it is possible.
Too bad LoopNet doesn't list properties pointing out that they have a cell site. Buying these property and then flip the cell tower. [REMOVED]this is how you can earn 2 commissions or buy a property pretty much wholesale (after the flip).
I created a topic inquiring about contract vendee's anyone ever herd of em? As I'm curious to this whole 'no money down' thing myself
Originally posted by Will Barnard:Originally posted by Damion Hopkinson:
Depending on the stratgey you use to acquire properties will determine what you need to do. For instance, choosing the REO market to wholesale will require a different stratgey and team then going after motivated home sellers and such.
For a newbie like me, I have NO idea what is the best strategy/strategies, nor do I understand how to best "run the numbers"...
Renae, the answers to your two questions are quite complex and difficult to answer without knowing what exactly you are interested in doing. If wholesaling, read the wholesaling forums, if buy and hold, the landlording forums, and if rehabbing is your desire, the rehab forums.
As far as acquisitions, you do have a multitude of options for any RE path. MLS, direct marketing, probate, and each of those have sub categories like REO, short sales, etc.
Give some specific questions associated with your goal in the appropriate threads and you will get your answers.
I'm new here on BP. How and where can I start a buyers list?
Hey Will welcome in all honesty it's a number of things but by updating your profile and letting people know what your target market is or what is your real estate investing niche you will be surprised by how many people make contact with you. Also I would recommend you use the market place tab to offer the real estate investing service you have available.
Thanks Jay for offering that information....I'm truly new to this. A friend and I have been wanting to get into investing and rehabbing. And had no knowledge of how to do this. We recently went to a than Merrill seminar and thought there has to be a way to educate ourselves without the high expense So im here to absorb as much information as I can. So again Thanks Jay any other information you have would be appreciated....
This is why almost all wholesalers fail, they try and find a way to get started with no money. If you want a long-term sustainable business then you should approach it as one. Develop a business plan, have the start-up capital that you need, deal honestly and fairly and then you MIGHT have a chance of longevity.
Sit down and plan out how you can successfully start this business. Map out what you think it will take for you to get started and how you can get to that point. Plan a budget and stick to it, your end goal will be starting your own business.
Check the credentials of those who are telling you that you can do it with no money. They're either gurus who don't actually wholesale deals (which is almost all of them) or they're people who only have a couple of deals under their belt and feel like after a few deals they know everything.
In my opinion you need a minimum of 4-6 month of living expenses and $5-$10k of operating capital. Remember, your initial expenses are going to be much higher as you get started because you will have a lot to learn. As you develop your strategy and begin to focus on what works for you, your costs will drop.
One last thing because this always bugs me, don't focus on your buyers list, it's a waste of time. Your job is to focus on deals, period. If you have 10 buyers who only want a 3/2 block home are you going to pass up a 1/1 condo that you can put under contract for 50% of what you can wholesale it for? One of my best "hits" last year came from a county about 2 hours from me. I had NO buyers but after looking at the comps I knew it was a great deal. 12 Hours after I started marketing the property I had a $20k flip. Remember, I had NO buyers but I had a great deal. That's all that matters. If you have a deal, the buyers will come. It has to be a real deal though. Successful wholesalers know what a real deal is.
Hey Will I gotta say I agree with Braden I too went to that seminar and even though we learned great stuff there are other ways around that huge expense that they charge and this website will help immensely also i do not know if you are aware or not but right now Florida is booming with great investment opportunities so take advantage of living in a great state. Join local real estate investment clubs also known as rei clubs. In all honesty you will need income to do wholesaling but you will see that is will mostly lie in your marketing and perhaps holding cost but as Braden states if it's a good deal buyers will be knocking your door down. So don't let fear stop you and remember with more education the fears dwindles away so good luck and keep on learning.
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Agree with Braden C. - too many people try to start their new career in real estate investing by doing "no money down" wholesale flips. This allure of a fantastic business that costs NO MONEY to build or run creates too much false hope and dashed dreams, IMHO. Everyone needs to approach this as a business; if you have not capital, you need to partner with someone that has it, because at the end of the day, this is about capital.
And it's dang hard to be a wholesaler - especially a "no money down" wholesaler - with no buyer's list. Chicken and egg problem...
I mean seriously. Seriously. How many times will another thread like this pop out? How many times will one see the same rinse and repeat posts? Im all for helping my fellow "rookie" wholesalers but jeez. Anyway I do agree with @Braden C. It is silly to jump into this without any money. I'll state it again each time from now on.
Save up at least 1 hour you work each if you're a full-time employee. Say you're making 40K and that comes to $19.23/hr and you should be saving about $96.15/wk. That'll add up to $5000 in one year. Note while you're saving this money you'll know it'll grow some more from the interest. It isnt much but the point is you're sticking by it. Seriously you'll thank me later.
While building up the "cash flow" join a REIA and learn. If there are classes to learn more about contracts, clauses and among other things join them. Shoot do a quick pitch and introduce yourself you just may get a buyer/seller whom is willing to help you. At times many retired investors still is apart of the REIAs and they'll be glad to help. These REIAs are looking for some of us "young" investors to come in and take over.